Successful Operation of the First AlkyClean Solid Acid Alkylation Unit

Transcription

1 Successful Operation of the First AlkyClean Solid Acid Alkylation Unit M. van Es Sr. Director Technology CB&I Process Safety Conference May 17, Dordrecht, The Netherlands A World of Solutions

2 Safe Harbor Statement This presentation contains forward-looking statements regarding CB&I and represents our expectations and beliefs concerning future events. These forward-looking statements are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of Forward-looking statements involve known and unknown risks and uncertainties. When considering any statements that are predictive in nature, depend upon or refer to future events or conditions, or use or contain words, terms, phrases, or expressions such as achieve, forecast, plan, propose, strategy, envision, hope, will, continue, potential, expect, believe, anticipate, project, estimate, predict, intend, should, could, may, might, or similar forward-looking statements, we refer you to the cautionary statements concerning risk factors and Forward-Looking Statements described under Risk Factors in Item 1A of our Annual Report filed on Form 10-K filed with the SEC for the year ended December 31, 2015, and any updates to those risk factors or Forward-Looking Statements included in our subsequent Quarterly Reports on Form 10-Q filed with the SEC, which cautionary statements are incorporated herein by reference.

3 Breadth of Services *Total operating group income from operations excluding nuclear disposition charges. See Reconciliation of Non-GAAP Supplemental Information Technology Licensed technology Proprietary catalysts Technical services Fabrication Services Fabrication & erection Process & modularization Pipe fitting and distribution Engineered products Specialty equipment Engineering & Construction Engineering Procurement Construction Commissioning Capital Services Program management Maintenance services Remediation and restoration Emergency response Environmental consulting A World of Solutions 2

4 Technology Overview Capabilities Petrochemical, gas processing and refining technologies Specialty catalysts Consulting and technical services Differentiation Most complete portfolio of olefins technologies World leader in heavy oil upgrading technologies Breadth of technologies provides complete solutions A World of Solutions 3

5 A World of Solutions 4

6 What is Driving the Demand for Octane? Global Fuel Demand Increasing, Including Gasoline High Octane Components Being Removed from Gasoline Pool Tighter Government Mandates Higher Performance Engines Requirements Overall Octane Deficit China V US Tier 3 California CaRFG3 Euro 5 Sulfur, ppm Olefins, % Aromatics, % Benzene, % RVP, kpa Winter/Summer 85/65 Effective Jan. 1, psi ~48 kpa Jan. 1, psi ~48 kpa Jan. 1, Jan. 1, 2009 A World of Solutions 5

7 Traditional Commercialized Alkylation Options World s Alkylation Capacity HF Alkylation High quality alkylate, low acid consumption, good feedstock flexibility Extremely hazardous; not preferred anymore Some refiners are considering shutting down existing units due to risk profile Public pressure is growing due to safety and environmental risks Sulfuric Acid (SA) Alkylation The alkylation technology of choice for refiners at this time Currently the best choice in balancing the safety/operability issues with benefits of high quality alkylate (particularly at low temperatures) CDAlky has become the technology of choice for sulfuric acid alkylation A World of Solutions 7

8 HF Alkylation Olefins Pretreatment i-butane Main Fractionator HF Reaction Polymer Column HF Polymer HF/Water HF Stripper KOH Treater Propane n-butane Acid/HC contacting done with eductor or recirculation Reaction temperatures near ambient (38 C) HF regeneration by fractionation Numerous fractionation product schemes Product and by-product clean-up required Debutanizer Alkylate A World of Solutions 8

9 HF Alkylation: Safety Issues Incident at Gumi, S-Korea September 27, 2012 Unloading of HF to Storage Tank 5 people died 18 people injured > 3000 people evacuated Difficult to approach Difficult to decontaminate Agricultural damage Vehicle damage Livestock affected A World of Solutions 9

10 HF Alkylation: Environmental Issues Avoiding HF Release Minimizing HF Handling: Transportation Storage/Inventory Regeneration Minimizing Waste Disposal Minimizing Impact of Other Refinery Units Incidents: Potential major impact Torrance refinery Costly & Continuous Mitigation Required A World of Solutions 10

11 HF Alkylation: Operational Issues Inherent Drawbacks of HF Alkylation: Expensive materials used to avoid/minimize corrosion Corrosion, Plugging likely in isostripper due to HF breakthrough Breakthrough of HF with products/by-products Post-treatment of products required Maintenance & Turnaround: Frequent turn-around needed Time on stream reduced significantly Safety Risks Production: Yield Loss due to the production of Acid Soluble Oil (ASO) Operability: Operation more difficult compared to other refining units A World of Solutions 11

12 Emerging Commercialized Alkylation Options Ionic Liquid (IL) Alkylation Ionic Liquid alkylation was commercialized in a 100 KTA unit in China (2013) Potentially removes some of the safety and hazard issues: This needs to be confirmed particularly in co-catalyst preparation Capital intensive: $130 MMUSD for 100 KTA (complex IL/HC separation) High utility consumption: 50% more than sulfuric acid alkylation Chlorides in the alkylate product: Post-treatment unavoidable Reported alkylate quality value falls short of a technology breakthrough Solid Acid Catalyst Alkylation Inherently safer than liquid acid technologies, particularly HF Optimized for low to average alkylate capacities CB&I and Albemarle successfully commercialized the first solid acid alkylation technology in China in 2015 using AlkyClean technology (capacity 2,700 BPD) AlkyClean technology is the first and only commercialized solid acid alkylation technology in the world A World of Solutions 12

13 The AlkyClean Process Challenges with HF Alkylation Units: Safety issues Environmental issues Operational issues Revamps & Grassroots Solution offered by CB&I and Albemarle : An environmentally friendly and competitive Solid Acid Catalyst technology to replace HF alkylation technology: AlkyClean A World of Solutions 13

14 AlkyClean Development A Brief History CB&I and Albemarle Catalysts: Cooperation since 1996 Bench scale pilot unit in Amsterdam First Licensee : Shandong Wonfull, Zibo, China 100 KTA alkylate capacity CB&I executed process design package in 2013 Start-up: August 2015 AlkyClean Awards 2016 Presidential Green Chemistry Award from the U.S. EPA A World of Solutions 14

15 Client Value Proposition AlkyClean Commercially proven with over 1 year of successful operation Inherently Safer and Environmentally Friendly No liquid acid used in the process No corrosion No safety risks through exposure Significant Operational Risks Reduction Eliminate HF safety risks Very Easy to Maintain and Operate Simple & robust operation: Fixed beds No corrosion High Product Quality Higher octane alkylate No ASO A World of Solutions 15

16 AlkyClean Differentiators Only Solid Acid Alkylation Process Commercially Proven Catalyst Supplier Albemarle: Leader in catalyst manufacturing Leader in catalyst development Optimized Catalyst Regeneration System: Longer catalyst cycle/life Tolerant to Feed Contaminants by Design Process design Catalyst A World of Solutions 17

17 AlkyClean References: Shandong Wonfull, Zibo, China Alkylate Production: 100 KTA 2,700 BPD Started up 2015 A World of Solutions 19

18 Shandong Wonfull Specifics Hydrogen Rich Fuel Gas Oxygenates, sulfur, nitriles and basic nitrogen components are removed to reach the AlkyStar catalyst impurities specification i-butane Make-up i-butane Olefin Feed Feed Pretreatment Reaction Section (3 Parallel Reactors) Product Fractionation Section n-butane Product Imported MTBE Raffinate A Selective Hydrogenation Unit is included to reduce the concentration of Butadiene in the feedstock Alkylate Product Hydrogen Catalyst Regeneration 100 kta alkylate A World of Solutions 20

19 RON, - Shandong Wonfull: AlkyClean Product Quality RON Sulfur < 1 ppm RVP < 50 kpa ASTM D-86 FBP < 208 C /15 09/15 10/15 10/15 11/15 12/15 12/15 01/16 01/16 02/16 Date, mm/yy A World of Solutions 22

20 HF Alkylation Revamp to AlkyClean: Incentives Safety: Peace of Mind Product quality: Higher No ASO = Higher Yield Higher RON, due to insensitivity for Butene-1 Impact of products on downstream units None Continuous cost of HF mitigation: Eliminated Maintenance Cost: Eliminated No replacement of expensive materials No corrosion issues Less frequent shutdowns & turn around Operating costs: Similar Catalyst instead of HF acid processing A World of Solutions 31

21 Conclusions CB&I and Albemarle Successfully Developed & Commercialized The World First Solid Catalyst Alkylation Process: AlkyClean AlkyClean Technology is Proven & Demonstrated: High Alkylate Product Quality Economically Viable AlkyClean Units Can easily Revamp HF Alkylation Units AlkyClean Process Utilizes a Commercialized Solid Acid Catalyst, and Therefore: Is an Inherently Safer Alkylation Technology Releases Refiners of HF Safety, Environmental and Operational issues Provides Refiners with Peace of Mind A World of Solutions 32

22 Copyright 2017, CB&I Inc. All rights reserved. A World of Solutions 33